Deutsche Bank Previews NVIDIA's (NVDA) Q3 Earnings; Maintains Hold

Deutsche Bank is out with a research note previewing NVIDIA's (Nasdaq: NVDA) Q3 earnings, which are expected out after the close on Thursday, Nov. 6. Ahead of the earnings report, Deutsche maintains its Hold rating and $7.50 price target.

The firm says that while shares of NVIDIA have drastically underperformed, it sees the Street's current consensus estimates as still being too high. Keeping this in mind, Deutsche sees estimates coming down over the next 2 quarters and believes that "new product cycles in GPUs, TESLa, TEGRA are unlikely to impact revenues until 2H09."

Deutsche Bank cut its Q3 EPS estimate from $0.13 to $0.12, versus the Street estimate of $0.12, and Q4 EPS from $0.15 to $0.12, versus the consensus of $0.16. For FY10, the firm lowered NVIDIA's EPS estimate from $0.60 to $0.50, versus the Street estimate of $0.83.

With shares of NVIDIA trading around $8.75 today, Deutsche's price target suggests further downside of about 14% from current levels.

NVIDIA Corporation provides visual computing technologies designed to generate interactive graphics on consumer and professional computing devices in the United States and internationally.

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